Thursday, July 7, 2022

Oil records $71.75, highest since mid-September 2019


Robert Frank
Robert started his career as a freelance content writer. Now, He is the founder of widely-recognized PR Agency. Robert still writes news pieces on various publications.

Oil prices rose on Wednesday, as Brent crude futures recorded 68.94 dollars a barrel, an increase of 1%, as it rose earlier, recording 71.75 dollars per barrel, which is the highest increase since mid-September 2019, as futures contracts for West Texas Intermediate, the United States rose Recorded 63.17 dollars a barrel, an increase of 0.8% to, as it had recorded earlier, 65.85 dollars, which is the highest level since the month of April 2019.

According to international media reports, the rise in oil prices today came after Iran launched ballistic missiles at two air bases used by the American and coalition forces in Iraq.

Media reports indicated that the unrest in the world oil markets decreased after Iran’s indications that it had ended revenge against the United States for the killing of Qassem Soleimani, leader of the Iranian Revolutionary Guard Corps, which was targeted by the United States outside Baghdad airport last week.

Mohamed Barkindo, Secretary General of OPEC, had stressed during his speech on the sidelines of a conference in the Emirati capital, Abu Dhabi, that the Iraqi oil installations are safe, and that Iraq’s production continues after the Iranian missile strike, explaining that Iraq will reach a rate of 100% compliance with OPEC’s cuts “And at the right time.

Dr. Tharwat Ragheb, Professor of Petroleum and Energy Engineering and Head of the Petroleum and Gas Engineering Department at the Egyptian Chinese University, said that any external political influence of oil producing countries, especially Iran, America, or any superpower in oil production, affects the prices, stressing that the current events between Iran and America, This led to a temporary rise in oil prices.

He said that the price hike will be linked in the event of war between the two countries, and the barrel of oil will reach between $140 and $150, especially if Iran closes the Strait of Hormuz.

Ragheb said that there is a temporary rise after America killed Qassem Soleimani, and the oil price now ranges from $60 to $70, the price will decrease as conditions stabilize, indicating that America has huge oil reserves that it uses in times of crisis and pumped from it to maintain price stability.

He stressed that Saudi Arabia is a huge product and is increasing production to fill the global shortage in times of crisis.

Ragheb pointed out that Iraq produces 4.5 million barrels per day daily and exports 3.4 million barrels per day, and it is one of the main OPEC countries to provide oil in the needs of the world, and any shortage of its share occurs for political reasons, Saudi Arabia, the United Arab Emirates and America fill the shortage to maintain the price of a barrel of oil within the limits of 60 dollars.

The expectations of the British Capital Economics research firm that this war, if it occurs, could lead to the loss of the global economy about 0.5% of its value, as a result of the collapse of the Iranian economy and the impact of the high price of oil on the economies of countries. The report pointed out that if Iran closes the Strait of Hormuz, it is possible to increase the price of oil to 150 dollars per barrel, which will be reflected in the levels of inflation in the world, to rise by between 3.5 to 4% in the countries of the Organization for Economic Cooperation and Development.

Iran has targeted two military bases that include American forces in Iraq in retaliation for the killing of Soleimani, which constitutes a major escalation between the two opponents. The attack was the first to be very direct against the United States since the capture of the US embassy in Tehran in 1979.

Read also: Trump: American army eliminated the largest terrorist in the world, and he was Qassem Soleimani

While the strikes have raised fears that the two old rivals were closer to the war, the comments from both sides indicate that there will be no more revenge on either side, at least in the short term.

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